Marketing Paper on An Internal Analysis of Coca Cola Company

An Internal Analysis of Coca Cola Company

Strengths

·         An extremely recognized brand name

·         A unique flavor for its beverages

·         Strong capital base

·         Strong distribution channels

·         Good relationship with bottling companies

·         Effective marketing and advertisement campaigns.

Weaknesses

·         Some of its products are accused of causing obesity, diabetes, and other health problems

·         A mismatch of some of its products with their popularity and the company’s popularity

·         Negative publicity, especially in the U.S. market

·         Lacks beverages for the health-conscious consumers

 

 

Strengths

No other company in the beverage industry has been able to dominate the market as much as the company has in the international market. The popularity of this brand enables the company to penetrate the market, thereby edging out its competitors with ease. Additionally, most of the company’s products have unique flavors that other companies have not been able to imitate, giving customers an exclusive variety. Besides, Coca-Cola enjoys a strong capital base (Hill, Jones, & Schilling, 2014), which has helped it afford its operation costs and make profit; therefore, its products are never in short supply. This gives customers a sense of dependability; hence, they remain loyal.

Further, the fact that the company has a strong and well-established distribution channel, which the majority of its local competitors do not boast, enables it to distribute its new products easily as soon as they come on the market. Additionally, the company enjoys a good relationship with most bottling companies in various countries (Hill et al., 2014). Because of this relationship and its huge capital base, Coca-Cola often enters into long term contracts with those companies. The long-term contracts bar unstable rivals from competing with the company. As a result, Coca-Cola continues to dominate the international beverage market.

In addition, the Coca-Cola Company has continuously invested in good quality and persistent advertisement campaigns. Although media airtime is quite expensive, it is worth it in this case. Coca-Cola advertisements have associated its beverages with sports, art, and other activities that are full of life. Therefore, advertisement is one of the most essential tools Coca-Cola has.

Weaknesses

There have been significant campaigns against soda brands around the world that emanate from health concerns regarding them. Consequently, the public perceives the majority of the company’s beverages as unhealthy because they are starchy and contain much sugar, which is the company’s main weakness. The said beverages are accused of causing diabetes and obesity among other health related problems when consumed over a long time and in high quantities. The company has been unable to produce healthy drinks, thereby catering for the huge market that increasingly minds its health. Accordingly, unless the company develops products for the health conscious consumers, it is unlikely to attract this group of customers. Its sluggish performance in the U.S. market is also likely to prolong. The other major weakness relates to the taste of some of its products, especially the bottled water. The latter are accused of not matching their popularity and the popularity of the company, hence damaging the company’s brand and reputation, although not significantly (Hill et al., 2014). Besides, even though the company is a market leader, it faces stiff competition from other soda companies such as Pepsi, which is Coca-Cola’s main rival.

 

Reference

Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: Theory. Mason: South-Western.